The Central Bank of Cyprus published updated aggregate data on non-performing loans for the Cyprus banking sector with a reference date of 31 July 2025, showing a further marginal improvement in asset quality metrics. At end-July 2025, the sector’s non-performing loans (NPLs) ratio declined to 5.5% from 5.6% at end-June 2025, mainly reflecting repayments, positive movements in the performing categories and write-offs. The coverage ratio of NPEs with bad provisions increased to 62.2% from 62.0% over the same period. Total loans that received restructuring amounted to EUR 1.2 billion, of which EUR 0.6 billion remained classified within NPEs.
Central Bank of Cyprus updates banking sector NPL data showing ratio falls to 5.5% at end-July 2025
The Central Bank of Cyprus reported a slight improvement in asset quality metrics for the banking sector as of 31 July 2025, with the non-performing loans (NPLs) ratio decreasing to 5.5% from 5.6% in June. The coverage ratio of non-performing exposures (NPEs) with bad provisions rose to 62.2%. Restructured loans totaled EUR 1.2 billion, with EUR 0.6 billion still classified as NPEs.